The Spearman Rank Correlation Coefficient is denoted by the symbol rho and measures the strength of a relationship between two variables. In terms of spelling, "Spearman" is pronounced /ˈspɪərmən/ with stress on the first syllable. "Rank" is pronounced /ræŋk/ with a short vowel sound in the first syllable and stress on the second syllable. "Correlation" is pronounced /ˌkɒrəˈleɪʃn/ with primary stress on the second syllable and the final "t" being silent. "Coefficient" is pronounced /koʊɪˈfɪʃnt/ with stress on the second syllable and the final "t" being pronounced lightly.
The Spearman Rank Correlation Coefficient (ρ), developed by Charles Spearman in 1904, is a statistical measure that quantifies the degree and direction of the relationship between two variables. It is a non-parametric measure used when the data does not meet the assumptions of the Pearson correlation coefficient. The Spearman Rank Correlation Coefficient assesses the monotonic relationship between variables, focusing on the order or rank rather than the actual values.
The coefficient ranges from -1 to +1. A value of +1 indicates a perfect positive monotonic relationship, meaning both variables increase together in a straight-line pattern. Conversely, a value of -1 represents a perfect negative monotonic relationship where one variable increases as the other decreases. If the coefficient is 0, it implies no monotonic association between variables.
To compute the Spearman Rank Correlation Coefficient, the data points are converted into their respective ranks. Each variable is ranked separately, assigning the lowest value the rank of 1, the next lowest value a rank of 2, and so on. Tied values receive an average rank. The difference between the ranks of each pair is calculated and squared. The coefficient is then calculated as 1 minus six times the sum of those squared rank differences divided by the square of the number of data points minus 1.
The Spearman Rank Correlation Coefficient is commonly used in various fields, including psychology, economics, and social sciences, to identify relationships between non-parametric variables when the distribution is non-normal or when outliers are present.